Why Russia is suddenly buying petrol from India
What's the story
Russia has begun importing gasoline by sea from India to tackle severe fuel shortages caused by Ukrainian drone attacks on its energy infrastructure. The shortage has resulted in rationing, long queues at filling stations, and a record spike in gasoline prices across the country. According to Reuters, at least 60,000 metric tons of gasoline have already been shipped from India to Russia.
Import strategy
Russia to import 400,000 tons of gasoline per month
Reportedly, two tankers carrying between 30,000 and 40,000 tons each have been dispatched. Russia intends to import a total of 400,000 tons of gasoline per month from different countries. This includes imports from Belarus, which is already supplying fuel to Russia. During summer months when demand is high, Russia's gasoline consumption is at least 110,000 tons per day.
Acknowledgment and action
Putin admits drone attacks causing fuel shortages
Russian President Vladimir Putin has admitted that Ukrainian drone strikes on oil refineries have caused fuel shortages in some regions. He assured that authorities are working to resolve the issue. Meanwhile, Belarus has increased its gasoline rail exports to Russia by nearly three times in the first half of June compared to the first half of May.
Legislative response
Russia's parliament passes amendments to deal with fuel shortages
Last week, Russia's parliament passed amendments to its tax code to deal with fuel shortages. The amendments include subsidies for fuel imports based on Indian delivery costs and prices. This comes as India increased its imports of Russian crude oil to a record high in June. Ship-tracking data from LSEG and Kpler showed that Russian oil made up over half of India's total crude imports in June, up from 36.5% in May.